S&P puts Banco Pan on positive watch

S&P said it placed Banco Pan SA’s B+ and brAA ratings on CreditWatch with positive implications.

The placement follows Banco BTG Pactual agreeing to buy Caixa Economica Federal's stake in Banco Pan for R$3.7 billion. “With the transaction, Caixa will fully divest from Banco Pan, while BTG Pactual, which is already the controlling shareholder, will own 71.7% of its shares. If local regulators approve the transaction, Banco Pan will be fully consolidated within BTG Pactual, increasing the likelihood of it benefiting from extraordinary support from the parent.” S&P said in a press release.

Banco Pan’s R$300 million of floating-rate medium notes are due on May 27.

The agency said it aims to resolve the CreditWatch after the deal closes.

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